Chapter 4, Problem 12MC

1.

Summary Introduction

To determine: The value at the end of year 3.

2.

Summary Introduction

To determine: The present value at the end of year 3.

3.

Summary Introduction

To discuss: The reasons on whether the stream given is an annuity.

4.

Summary Introduction

To discuss: The outcomes for part 1 and 2 if the nominal rate of 10% is used rather than periodic rate of 5%.